Precision Drilling

She doesn’t any of the oil services companies because of the overall negative view of the Canadian sector at this time. She did own it a few years ago but sold it and is waiting for the sector to recover before buying again.

She doesn’t any of the oil services companies because of the overall negative view of the Canadian sector at this time. She did own it a few years ago but sold it and is waiting for the sector to recover before buying again.

(A Top Pick March 17/17. Down 23%.)The largest drilling company in Canada, and there are opportunities beginning to open up in the energy sector as prices improve. There’s been more drilling activity of late. They have an Association with Schlumberger, which gives them access to a lot of good technology. Of all the Canadian drillers, this is the one he would prefer to own.

(A Top Pick March 17/17. Down 23%.)The largest drilling company in Canada, and there are opportunities beginning to open up in the energy sector as prices improve. There’s been more drilling activity of late. They have an Association with Schlumberger, which gives them access to a lot of good technology. Of all the Canadian drillers, this is the one he would prefer to own.

Compared to the producers, drillers have had more carnage. The one positive thing is the action in the last 6 months. All the indicators are turning up, and if it can move up to about $4.25, it would probably equate to some big potential upside, with $5.80 being the next level. A really good space and seasonally it has come into play. The sector tends to deteriorate in April and May and picks up again in the summer.

Compared to the producers, drillers have had more carnage. The one positive thing is the action in the last 6 months. All the indicators are turning up, and if it can move up to about $4.25, it would probably equate to some big potential upside, with $5.80 being the next level. A really good space and seasonally it has come into play. The sector tends to deteriorate in April and May and picks up again in the summer.

The issue is debt. It is massive. If you look at their 12-month cash flow, it was about $67 million in cash flow for the last 12 months, and the debt is over $1 billion. Those numbers just scare him to death. That wouldn't be so bad if the sector was surging and all the oil/gas producers were massively increasing budgets. He would be very, very cautious on any service or drilling company.

The issue is debt. It is massive. If you look at their 12-month cash flow, it was about $67 million in cash flow for the last 12 months, and the debt is over $1 billion. Those numbers just scare him to death. That wouldn't be so bad if the sector was surging and all the oil/gas producers were massively increasing budgets. He would be very, very cautious on any service or drilling company.

They are moving into oil gradually and expect to add another 5% in their equity platform in energy, but they haven’t been buying the drillers because they don’t look like the rest of the oil stocks. On the technical side it looks like there was support on the 2016 lows and kind of looks like this is breaking. The downtrend is still in place and it hasn’t slowed or broken out. That’s not the kind of profile he personally looks for. There is always room for short term movement, but he wants the stock to prove itself, and he doesn’t see any of the drillers proving themselves.

They are moving into oil gradually and expect to add another 5% in their equity platform in energy, but they haven’t been buying the drillers because they don’t look like the rest of the oil stocks. On the technical side it looks like there was support on the 2016 lows and kind of looks like this is breaking. The downtrend is still in place and it hasn’t slowed or broken out. That’s not the kind of profile he personally looks for. There is always room for short term movement, but he wants the stock to prove itself, and he doesn’t see any of the drillers proving themselves.

You see companies cutting back on exploration budgets. This stock may have bottomed out here. It is building a base for the future when the environment gets better. He would not buy it but it might have trading potential over the next year. Conditions can’t get much worse. Watching it before getting back in.

You see companies cutting back on exploration budgets. This stock may have bottomed out here. It is building a base for the future when the environment gets better. He would not buy it but it might have trading potential over the next year. Conditions can’t get much worse. Watching it before getting back in.

He likes the space, but this one has been frustrating. Has been in a downtrend for a number of years, but what is encouraging is that there is a small base forming. You might consider looking at Calfrac Well Services (CFW-T) and Trican Well Services (TCW-T), which he likes a little better. With the rest of the market moving, if this company isn’t moving, maybe you want to get out of it.

He likes the space, but this one has been frustrating. Has been in a downtrend for a number of years, but what is encouraging is that there is a small base forming. You might consider looking at Calfrac Well Services (CFW-T) and Trican Well Services (TCW-T), which he likes a little better. With the rest of the market moving, if this company isn’t moving, maybe you want to get out of it.

Very bullish on the surface sector in general, but less so towards drillers. Trends over the past couple of years have been getting more efficient. While it’s benefited the pressure pumpers, it works against the drillers because it is taking fewer days to drill a well. Overall demand for rigs has been falling. There is still too much equipment available.

Very bullish on the surface sector in general, but less so towards drillers. Trends over the past couple of years have been getting more efficient. While it’s benefited the pressure pumpers, it works against the drillers because it is taking fewer days to drill a well. Overall demand for rigs has been falling. There is still too much equipment available.

Made a bottom late August/early September. Those levels actually go back to early 2016, so from a risk/reward perspective and where energy is now, the risk/reward is really good. If it can get through $4, you’ll probably see an acceleration. At $5 (Institutional investors can't get in below that price) there will be more buying. Good risk/reward from here, so he would hang on.

Made a bottom late August/early September. Those levels actually go back to early 2016, so from a risk/reward perspective and where energy is now, the risk/reward is really good. If it can get through $4, you’ll probably see an acceleration. At $5 (Institutional investors can't get in below that price) there will be more buying. Good risk/reward from here, so he would hang on.

This site is used by investors to track what stock experts say.
Stockchase is useful as an online investing tool for due diligence, and for getting a feel for how companies are thought of by investment experts. This site should not be your only resource or reference, but it should be one of the investing tools in your arsenal for wise investing in the stock market. Stockchase draws only on what has been discussed by individuals who appear on business television programs, in particular the Business News Network. Stockchase, in its reporting, neither recommends nor promotes any investment strategies that have been discussed.

We are human and can make mistakes. Help us fix any errors.
If you see something that you know is not right or if there is a problem with the site, please email us at hello@stockchase.com.